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Nation urges companies to focus on domestic consumers
In the fightback against lower exports caused by the economic downturn, the Government has decided to provide VND51 billion (US$2.8 million) to promote trade on the domestic market.
The package, to be activated next month, will support research and development activities, distribution, fairs and communication programmes, according to the Ministry of Industry and Trade.
National research will be carried out for the first time on customer behaviour, distribution networks and business abilities, according to the deputy director of the ministry’s Domestic Market Department, Vo Van Quyen.
A promotion programme will also be aired for 10 minutes daily on TV channels VTV 1 and VTV 9. In addition, the fund will pay 70 per cent of the cost of organising fairs for agricultural and handicraft products.
Other activities, such as putting Vietnamese-made products on display in rural and remote areas, industrial zones and urban areas will also get 70 per cent support.
Foods, garments, textiles and home appliances will be the main subjects for research activities.
The programme will be piloted in 10 cities and provinces for one year - and then re-assessed.
"It requires huge capital and organising skills to conduct these activities. Ninety-five per cent of businesses are small and medium in size and most lack skills in promotion," said Quyen.
"The most favourable period for imported products was when we first opened up the economy. It has been changing. High demand for foreign goods now exists only among a small group of high-income people.
"Most of the population lives in rural areas and this is where we will promote local goods."
Together with tax and interest reduction for businesses, the programme is among long-term strategies to help the nation recover in the post-crisis period.
The communications programme would help raise awareness among customers and hopefully change their mindset, said Quyen.
"I never thought of buying only Vietnamese products, but now the slogan ‘Vietnamese use Vietnamese products’ is displayed every day and everywhere," said Vu Hoang Chi Lan, a customer in Ha Noi.
"I pay attention to and now favour Viet Nam-made products," said Lan. "I think many made-in-Viet Nam products have good quality now. "
The Domestic Market Department will select beneficiaries based on the bidding process under which companies file up their plans on each supported categories, the department will select best action plans to finance.
Tran Nguyen, programme manager of the Business Study and Assistance Centre, a local non-governmental organisation, said businesses used to rush for overseas markets. "However, the prime time for exports is over. Domestic markets are now the trend," Nguyen said.
The campaign calling on Vietnamese to use locally-made products will be vigorously pushed in rural and remote areas.
"It’s not about how much [businesses] can sell, it’s a chance for them to better understand market needs," Nguyen said.
Apart from developing rural distribution networks, other activities such as training selling and marketing skills for retailers are also on the business centre’s plan.
"The campaign is very supportive of what we are trying to do. The market is huge, but we don’t have enough capital or ability to conduct it alone," said Tran Huu Duc, public relations manager of Nutifood, an active member of the rural sales push.
Thanks to the campaign, company revenue rose 67 per cent from VND30 billion to VND50 billion per month (US$1.7-2.8 million). Revenue from rural and remote areas has doubled from VND10 billion to VND20 billion a month ($560,000-1,100,000) compared to last year.
"Together with efforts to improve product quality, we need support for communication programmes to create a new image for Viet Nam-made products and to survive in difficult times," said Duc.
In Hai Phong City, where the rural market accounts for 70 per cent of all business, few could afford to promote and finance domestic products. The new package is considered a leverage to bounce them back together.
"The subsidy period has passed. It’s time we stood on our own feet. Competition is getting fiercer. One small business is not strong enough to compete, but many small businesses working together can help us survive in this difficult time," said the deputy general director of Advertising and Cultural Services Company (ACS), Tran Kim Thanh.
The first made-in-Viet Nam fair, held last July in Kien Thuy district by ACS, attracted 40 enterprises with 60 booths.
It pulled in a revenue of VND700 million ($38,900) per day, giving the company confidence to run a fair with 150 enterprises and 200 booths in November.
VietNamNet, VietNamNews
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